Negative reinforcement

In a vertical analysis, the base for cost of goods sold is

a. total selling expenses b. sales c. total expenses d. gross profit

Armstrong Products Armstrong Products applies fixed overhead at a rate of $3 per direct labor hour. Each unit produced is expected to take 2 direct labor hours. Armstrong expected production in the current year to be 10,000 units but 9,000 units were actually produced. Actual direct labor hours were 19,000 and actual fixed overhead costs were $62,000. Refer to the Armstrong Products information

above. Armstrong's fixed overhead spending variance is: A) $8,000 F. B) $8,000 U. C) $2,000 F. D) $2,000 U.